Ocala City Council agrees on employee raises

Some negotiations yet to come with unions

In this Feb. 2, 2014 file photo, Ocala Recreation and Parks workers Frank Canova and Marty Lewis work together building the outdoor western themed building cover for the upcoming Rodeo Festival at Tuscawilla Park. Many city employees would receive a raise under a plan discussed by the City Council on Tuesday.

Published: Tuesday, July 22, 2014 at 6:31 p.m.

Last Modified: Tuesday, July 22, 2014 at 6:31 p.m.

The Ocala City Council on Tuesday agreed to give roughly $974,821 in salary increases to city employees in the upcoming 2014-15 budget. That number will be reduced to exclude the 50 electric utility workers who received $1.4 million in raises that went into effect July 6. Top management will not receive raises.

Rather than a one-time bonus that had been considered at previous budget workshop meetings, council members, instead, agreed to give full-time workers earning $50,000 or less a year a 3 percent increase. Full-time workers who earn more than $50,000 a year and part-time workers will get a 1.5 percent increase. Those raises also must be negotiated with the city's three unions. About 70 percent of the city's roughly 900 employees earn $50,000 and below.

The 50 electric utility workers who, on average, got a $10,000 annual increase, excluding benefits and taxes, will not get the additional raises. Depending on one's position, those raises range from 6.84 percent to 46.16 percent or about $3,400 to $15,700 an employee.

City Manager Matthew Brower approved the $1.4 million to cover the additional costs of salaries and benefits for the electric utility workers.

“I have the authority to work within budget limits of the electric fund,” Brower said. “It was within the budget limitations that council established for me.”

Those raises were never discussed publicly. Brower said he briefed each council member about the raises.

Each of the five council members said they met individually with Brower to discuss the raises. If more than one council member attends a meeting to discuss the public's business, the meeting is required by the state's sunshine law to be publicly noticed. Individual meetings can be held outside the public's view.

The workers from the substation, meter and the transmission and distribution divisions of the electric utility received the increases.

Brower said the city competes for employees with Sumter Electric Cooperative (SECO) and Duke Energy, the largest power company in the nation and, to a lesser extent, with Clay Electric Co-op.

“We had three employees leave us to go to SECO making more than we are making now,” Brower said, referring to the wages before the July increase. “We increased our pay to be within 95 percent of SECO.”

He said the rate is 5 percent lower than SECO's because he felt there is a “benefit to work in the city.” He said the service area is contained and the city is innovative.

“These positions require a minimum four years' apprenticeship,” Brower said. “That's four years of cost in training these employees.”

He said he has to pay enough to keep the employees from leaving or hope he has enough people in the apprenticeship program to fill any vacancies.

“This is what I call a market adjustment,” Brower said about the raises. “This is about trying to ensure we have the right people on staff so we can keep the power on.”

All five council members echoed Brower's sentiments.

Councilman Jay Musleh said he looked at the numbers and the city's utility wages were not competitive.

“I think our city manager, in that case, made the right call,” Musleh said. “I encouraged it.”

Asked if the council's decision to reduce the general employees' pension benefits is causing electrical workers to look for greener pastures, Musleh said, “I would rather pay a competitive wage that we know what our costs will be year after year than a pension plan that goes up and bites us in the rear like this one was, that was unsustainable, entered into years and years ago, and then become unsustainable years later.”

During the discussions about reducing the general employees' pension benefits, electric workers told the council that any reductions will push electrical workers out the door. Musleh, Council President John McLeod and Councilwoman Mary Sue Rich all voted to revise the pension plan. Councilmen Jim Hilty and Brent Malever were not sitting on the council at the time of the pension reform.

“I think we were losing a few to pay anyway,” McLeod said. “I think the pension had something to do with it.”

In addition to reducing the general employees' pension benefits, the city is hoping to reduce the police and fire pensions, which are subject to collective bargaining.

“We are paying almost $20 million into the city's three pension plans,” Brower said. “If you look at what the city has paid in employee benefits over the last five years, despite economic challenges, we have done an amazing job of trying to keep pace.”

Asked about the morale of the other employees, whose proposed raises are not nearly as generous as the electrical workers' increases, Brower said. “Certainly they are curious as to why they can't receive a similar increase.”

He said the employees were “a little bit upset,” and that is the reason he recommended the increase.

The city will have to negotiate salaries with the police and fire unions and the new city union, the International Brotherhood of Electrical Workers Local 1205. If the council approves the raises during the final budget hearings, nonunion employees will get their raises starting Oct. 1. The unions will bargain for their members.

Councilman Hilty, at an earlier budget workshop meeting, had proposed leaving the millage rate at the current rate rather than going to the rolled-back rate. Leaving the millage rate at the current rate would have generated enough money to cover the nonelectric raises. But council opted for the lower rolled-back rate.

“We are going to have to find the money some way,” Hilty said.

He said the benefit to a one-time bonus is that the city would not have to match the Social Security and contribute more to the pensions.

All the council members said the employees have not had raises in five years and felt either a bonus or raise was in order.

Salary increases are subject to council approval at the final budget hearings on Sept. 4 and Sept. 16. It should be noted that the council has changed the regularly scheduled Sept. 2 meeting to Sept. 4. Both meetings start at 4 p.m. in Council Chambers on the second floor of City Hall, 110 SE Watula Ave.

<p>The Ocala City Council on Tuesday agreed to give roughly $974,821 in salary increases to city employees in the upcoming 2014-15 budget. That number will be reduced to exclude the 50 electric utility workers who received $1.4 million in raises that went into effect July 6. Top management will not receive raises.</p><p>Rather than a one-time bonus that had been considered at previous budget workshop meetings, council members, instead, agreed to give full-time workers earning $50,000 or less a year a 3 percent increase. Full-time workers who earn more than $50,000 a year and part-time workers will get a 1.5 percent increase. Those raises also must be negotiated with the city's three unions. About 70 percent of the city's roughly 900 employees earn $50,000 and below.</p><p>The 50 electric utility workers who, on average, got a $10,000 annual increase, excluding benefits and taxes, will not get the additional raises. Depending on one's position, those raises range from 6.84 percent to 46.16 percent or about $3,400 to $15,700 an employee.</p><p>City Manager Matthew Brower approved the $1.4 million to cover the additional costs of salaries and benefits for the electric utility workers.</p><p>“I have the authority to work within budget limits of the electric fund,” Brower said. “It was within the budget limitations that council established for me.”</p><p>Those raises were never discussed publicly. Brower said he briefed each council member about the raises.</p><p>Each of the five council members said they met individually with Brower to discuss the raises. If more than one council member attends a meeting to discuss the public's business, the meeting is required by the state's sunshine law to be publicly noticed. Individual meetings can be held outside the public's view.</p><p>The workers from the substation, meter and the transmission and distribution divisions of the electric utility received the increases.</p><p>Brower said the city competes for employees with Sumter Electric Cooperative (SECO) and Duke Energy, the largest power company in the nation and, to a lesser extent, with Clay Electric Co-op.</p><p>“We had three employees leave us to go to SECO making more than we are making now,” Brower said, referring to the wages before the July increase. “We increased our pay to be within 95 percent of SECO.”</p><p>He said the rate is 5 percent lower than SECO's because he felt there is a “benefit to work in the city.” He said the service area is contained and the city is innovative.</p><p>“These positions require a minimum four years' apprenticeship,” Brower said. “That's four years of cost in training these employees.”</p><p>He said he has to pay enough to keep the employees from leaving or hope he has enough people in the apprenticeship program to fill any vacancies.</p><p>“This is what I call a market adjustment,” Brower said about the raises. “This is about trying to ensure we have the right people on staff so we can keep the power on.”</p><p>All five council members echoed Brower's sentiments.</p><p>Councilman Jay Musleh said he looked at the numbers and the city's utility wages were not competitive.</p><p>“I think our city manager, in that case, made the right call,” Musleh said. “I encouraged it.”</p><p>Asked if the council's decision to reduce the general employees' pension benefits is causing electrical workers to look for greener pastures, Musleh said, “I would rather pay a competitive wage that we know what our costs will be year after year than a pension plan that goes up and bites us in the rear like this one was, that was unsustainable, entered into years and years ago, and then become unsustainable years later.”</p><p>During the discussions about reducing the general employees' pension benefits, electric workers told the council that any reductions will push electrical workers out the door. Musleh, Council President John McLeod and Councilwoman Mary Sue Rich all voted to revise the pension plan. Councilmen Jim Hilty and Brent Malever were not sitting on the council at the time of the pension reform.</p><p>“I think we were losing a few to pay anyway,” McLeod said. “I think the pension had something to do with it.”</p><p>In addition to reducing the general employees' pension benefits, the city is hoping to reduce the police and fire pensions, which are subject to collective bargaining.</p><p>“We are paying almost $20 million into the city's three pension plans,” Brower said. “If you look at what the city has paid in employee benefits over the last five years, despite economic challenges, we have done an amazing job of trying to keep pace.”</p><p>Asked about the morale of the other employees, whose proposed raises are not nearly as generous as the electrical workers' increases, Brower said. “Certainly they are curious as to why they can't receive a similar increase.”</p><p>He said the employees were “a little bit upset,” and that is the reason he recommended the increase.</p><p>The city will have to negotiate salaries with the police and fire unions and the new city union, the International Brotherhood of Electrical Workers Local 1205. If the council approves the raises during the final budget hearings, nonunion employees will get their raises starting Oct. 1. The unions will bargain for their members.</p><p>Councilman Hilty, at an earlier budget workshop meeting, had proposed leaving the millage rate at the current rate rather than going to the rolled-back rate. Leaving the millage rate at the current rate would have generated enough money to cover the nonelectric raises. But council opted for the lower rolled-back rate.</p><p>“We are going to have to find the money some way,” Hilty said.</p><p>He said the benefit to a one-time bonus is that the city would not have to match the Social Security and contribute more to the pensions.</p><p>All the council members said the employees have not had raises in five years and felt either a bonus or raise was in order.</p><p>Salary increases are subject to council approval at the final budget hearings on Sept. 4 and Sept. 16. It should be noted that the council has changed the regularly scheduled Sept. 2 meeting to Sept. 4. Both meetings start at 4 p.m. in Council Chambers on the second floor of City Hall, 110 SE Watula Ave.</p><p><i>Contact Susan Latham Carr at 352-867-4156 or susan.carr@starbanner.com.</i></p>